- Things to do before buying a car
- Applying for an auto loan
- Other important questions to answer
- Tips for negotiating a good deal
Your divorce is over. You’ve divided your assets and untangled your finances. Now, it’s time for the practicalities of living your post-divorce life.
If you and your spouse shared a vehicle when you were married, one of you is now facing the daunting task of buying a car. Your car-buying experience could take many forms. At some dealerships, a salesperson runs back and forth between their manager and you to get you a “better deal.” In other situations, buying a new car can be as easy as scrolling through your options and filling out an online application.
But first, you’ll want to know what you’re looking for and what you can afford.
Things to do before you buy a car
Today, there are so many car-buying options, it can be difficult to know where to start.
Before you even step onto a dealership’s lot, decide what kind of vehicle you’ll need, what your budget is, and what your insurance and financing options are.
Check that your driver’s license is up to date. You may have changed your name or address during your divorce. Make sure your license reflects these changes.
Applying for an auto loan
If you need an auto loan, you’ll want to answer some important questions about your finances before you fill out the application:
- How much of a down payment can you offer?
- How much can you afford in monthly payments?
- What does your credit score look like?
All these factors will impact what kind of car you can get and the financing you’ll be offered.
Before you drive a car off the lot, you must show the dealer proof of insurance. Make sure you have the appropriate coverage in place before you go shopping.
Other important questions to answer
What will you use your car for?
Do you have a significant commute to work and need to consider mileage? Will you be shuffling kids and their friends to soccer and dance and want size and safety? Would you be happy with anything that runs and has four wheels? Would you be interested in an electric vehicle or hybrid?
Your needs and finances will inform the type of car you might consider.
How many seats do you need?
While you might be tempted by the cute little sports car, reality says that the kids and their friends get priority. Not many cute little sports cars have the third-row option you’d need for hauling your kids and their friends to pizza after soccer practice.
How much trunk space or other storage space do you need?
No matter how simple your lifestyle is, there may be times you need to move something large. Think about the last time you tried to fit that TV in your hatchback. Do you need to haul a trailer periodically? Consider your uses, and build your vehicle purchase around that.
What is your budget?
The price of cars is a lot higher than it used to be. Don’t get caught in the dealership smoke and mirrors game that gets you into a car you simply can’t afford. Prepare yourself by checking out sites like Kelley Blue Book or Edmunds to get an idea of what your chosen car should be selling for and what your trade-in is worth.
Who can you call if you have car problems?
If you own a car, you’ll eventually need someone to service it. Finding a good car mechanic is an age-old dilemma, and personal recommendations are often the best resource.
If you’ve located an honest dealership you like, they may be a good repair resource. However, they will not necessarily be the cheapest option. Before your car needs any major repairs, try some local shops for more minor needs, such as oil changes, to get a feel for their business.
Roadside assistance coverage is invaluable in the event you have a breakdown while driving. Some car manufacturers offer roadside assistance as part of your purchase. You can also look at your state American Automobile Association, which offers roadside service and many other automobile-associated services.
Tips for negotiating a good deal on a car
Knowledge is your best friend when car shopping. Know how much the car you want is worth. Know your trade-in value. Know what dealer fees you can refuse or negotiate. Be prepared to walk out the door if the dealer pushes fees you’re not willing to pay or offers less than your trade-in is worth.
Research dealerships carefully. Read online reviews of dealerships before you visit them. While some businesses focus on the allure of a low monthly payment, don’t lose sight of the bottom line: your purchase price.
No-haggle pricing still has a cost. Uncomfortable haggling has prompted some dealerships to offer no-haggle pricing. Now, how do they make their money? Your trade-in value … and all the incidental “fees” needed to get the car out the door. Keep this in mind as you shop.
Divorce is not just a legal matter. Your life has changed in myriad ways. At Hello Divorce, we don’t just offer online divorce options; we also provide resources and access to experts who can help support you each step of the way, before, during, and after divorce.
Have questions? We have answers. Schedule a free 15-minute phone call to see how we can help.
FAQs
What should I do first when buying a car after divorce?
Start with a realistic budget based on your solo income, support you pay or receive, debts, and insurance costs. Check your credit, set a comfortable total monthly car number, and get prequalified to know your price range.
Can I use spousal or child support as qualifying income?
Often yes, if it’s documented, consistently received for the required period, and likely to continue for the loan term. Keep orders and proof of receipt.
How do I handle the car we had during the marriage?
If the decree assigns it to one spouse, remove the other from title and refinance or pay off the loan to release them. If neither wants it, sell or trade it and document how equity or negative equity is handled.
Is it better to buy new or used after divorce?
Used can lower payment and insurance; new may offer lower APRs and warranties. Choose the option that keeps your budget comfortable with room for savings.
How does insurance change when I’m on my own?
You’ll need your own policy with updated address, drivers, and mileage. Ask about discounts and make sure listed drivers reflect your household and custody pattern.
What paperwork do I need for title and registration?
Bring ID, proof of insurance, the bill of sale or contract, odometer disclosure, required emissions/smog, and your divorce order if it affects title. Lenders appear as lienholders on financed titles.
How to Buy a Car on Your Own After Divorce
Set your total car budget
Pick a monthly cap that includes the loan, insurance, fuel, maintenance, and registration, with a buffer for savings.
Strengthen your credit profile
Check your credit, fix errors, and pay down balances to improve your rate and approval odds.
Get prequalified and organize documents
Secure prequalification or preapproval and gather pay stubs, support orders with proof of receipt, and your ID so financing goes smoothly.
Choose the right vehicle
Match reliability, safety, and space needs to your budget. For used cars, run a history report and consider an inspection.
Decide on trade-in or sale of the marital car
Follow your decree. Refinance, obtain lien releases, and document how proceeds or negative equity are divided.
Finalize financing and paperwork
Review the contract, APR, fees, and term. Confirm the lienholder and your personal details are correct before signing.
Secure insurance and complete title/registration
Activate insurance for pickup day and file title and registration promptly. Keep copies of all documents together for easy access.
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